There's a house down the hill from where I live that sold recently... for about $300K less than the average home sells for in the area. Locals all know about the house-- it had long been less than pristinely maintained as the original owners grew elderly and invalid. Folks assumed it would need to be gutted and rebuilt to bring it up to aything like a current comparable home in the neighborhood. And the new owners are doing just that-- doing an extensive remodel that will yield them a nice home in a decent area (hard to say 'nice home in a decent area' and know that homes sell for 7 figures here but that's proximity to SF driving the values).
If they were reselling the home after the remodel the neighborhood would see the "comparable" value realized-- but these folks are planning on living in the home and raising a family. If you were showing clients homes in the area, how do you deal with this home as a recent sale? Do you try and explain it away as the major fixer it was, eliminate it from 'relevant' comps, or do you do something else? How does an appraiser view this home when establishing comps for anyone in the neighborhood that might be refinancing. Is a home like this likely to cause comps to suffer in the short run?
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